3. VPA (Proxy Identification)

3. VPA Address (Proxy Identifier)

3.1 VPA/ Proxy Background

Virtual Payment Address (VPA) or Proxy Identifiers is introduced in xBorder transfer to simplify and enhance user experience, as well as to increase data security. Proxy Identifiers link payer’s or payee’s account information with a short identifier allowing them to transact in a seamless manner without needing to know and input beneficiary’s bank account details. Common types of VPAs or proxy identifiers include mobile numbers, email addresses, and scheme specific identifiers. The mapping and resolution of a proxy identifier with actual customer account is maintained in a VPA or proxy database in any real-time retail payment. Proxy identifiers can be stored on centralized (within the network) or de-centralized (typically at the BFIs) basis. It is used to map and resolute the customer account. There are basically two parameters which are required for maintaining the proxy databases: Base Identifier and Proxy Identifiers. Base identifier acts as the underlying verified or verifiable information that forms a foundation of a proxy identifier. Any or multiple information used to identity a customer during KYC or account opening will serve as Base Identifiers, which will be linked to Proxy Identifier. Proxy Identifier is used to initiate a transaction thereby eliminating a need to input beneficiary's bank account detail. And Base Identifier is used to verify Proxy Identifiers during the registration process and other AML/compliance related checks.

3.2 VPA or Proxy Identifier for NPIx

The existing NEPALPAY Instant framework of RPS, which used mobile number of the customer linked with bank account, will be used as basic architecture of VPA or Proxy Identifier for xBorder transfer. This is already in use for domestic VPA based P2P transfer and so the prerequisite for the participating banks will be NEPALPAY Instant. However, for acceptability of the architecture, it has been further enhanced to accept using mobile number or scheme-based id (alphanumeric code) concatenated with issuer bank code (separated by ‘@) will be used as VPA/ Proxy Identifier. The underlying Base Identifiers will be customer identification document type, identification number and issue date/place. Such information could be citizenship, National Id, Driving License, PAN Details, or other accepted customer identification. Such information held at the bank’s end will be shared through existing NPI Banks (existing middleware at bank’s end that is currently resolving mobile number to bank account with addition of Base Identifiers within the same component). xBorder participating members are required to provide the details under Base Identifiers during consent flow of a customer for xBorder transaction. Additionally, members need to outline the mechanism for resolving VPA or proxy address during each transaction processing, utilizing the concept of a decentralized proxy database via APIs or database views. Further details about the consent process and API specifications are provided in the later sections.

3.3 Sample VPA or Proxy Identifier

Transaction Type	Payer	Payee (Option)	Instruments	Identifier
xBorder Inward Fund Transfer	Pre-approved(Pre-funded account)	VPA	Bank Channels	1.<Registered Mobile NO>@<bankcode> Eg. 98524*****@ACBD 2.<Alphanumeric String>@<bankcode> Eg. RAM***001@XYZ
			connectIPS	<Registered Mobile NO>@<cips>98524*****@cips
			PSPs/Wallets	<Registered Mobile NO.gt;@<walletcodegt; Eg. 98524*****@XYZPAY